Letv Auto acquires 70% stake in Yongche
Letv Auto will acquire a 70% stake in Yongche to completed the service loop of its Smart Car project.
Letv Auto announced that it has signed an investment agreement to acquire a 70% stake in Yongche. The investment will make Letv the largest shareholder in the car-sharing platform.
Letv Auto's smart car prototype
Yongche will retain its management, and its CEO Herman Zhou will continue to run operations after the acquisition.
Letv said the investment concluded Yongche’s D Series financing round and also completed the service loop of its Smart Car project.
The cost of the transaction has not been disclosed by either party.
The team up of Letv and Yongche will rewrite the rules and create a whole new business model for car sharing and social operations as well as the state of play in the online smart car segment.
Letv has been pursuing the credo of “bringing online smart electric transportation to protect the living environment so that everyone can breathe clean air”, ever since its founder and CEO Yueting Jia unveiled the “SEE plan” last December.
Letv have already formed partnerships with BAIC Motor Corp and Aston Martin and made strategic investment in car charging station provider Beijing Dianzhuang Technology Co project for its smart car project. Its latest investment in Yongche will add car sharing and social operations to complete its chain of production in the smart car area that already covers RD, manufacturing, sales, online capabilities, charging, after sales service.（Translation by David)